Question

Elena deposits $1,500 in a savings account that earns 3.0% simple interest per year. If no deposits or withdrawals are made during the year, how much money will be in her account after one year?

Answer 1

Answer:

FV= $1,545

Step-by-step explanation:

Giving the following information:

Elena deposits $1,500 in a savings account that earns 3.0% simple interest per year.

To calculate the nominal value of the account after one year, we need to use the following formula:

FV= (P*r*t) + P

FV= future value

P= principal

r= interest rate

t= 1

FV= (1,500*0.03*1) + 1,500

FV= $1,545